US suspends Cognizant's green-card applications amid visa fraud probe
What's the story
The United States Department of Labor has suspended Cognizant's Permanent Labor Certification (PERM) filings. This is the first step in a process where employers sponsor foreign workers for permanent residency. The move comes as part of a nationwide fraud investigation that began in July, underlining the Trump administration's crackdown on alleged visa fraud.
Impact
Implications for Cognizant and other IT firms
The suspension of Cognizant's PERM filings will prevent the Indian IT services giant from submitting new PERM applications until the Department of Labor completes its investigation.
The probe is looking into alleged fraud related to the company's H-1B and PERM programs.
This could also lead to increased scrutiny on other major Indian IT firms such as TCS, Infosys, Wipro, and HCL that heavily rely on these visa programs.
Understanding PERM
Understanding the PERM process
PERM, or Program Electronic Review Management, is a process where US employers seek approval from the Department of Labor to sponsor foreign workers for permanent residency.
Employers have to prove that no qualified US workers are available for the job and that hiring a foreign worker won't adversely affect wages or working conditions of American workers.
The latest suspension only applies to new PERM filings by Cognizant.
Probe specifics
Whistleblower complaints and federal investigation
The suspension comes after whistleblower complaints of wrongdoing in Cognizant's use of immigration programs.
The Department of Labor's Inspector General, Anthony D'Esposito, said he is working with the White House Fraud Task Force to investigate these allegations.
He emphasized that "Threats to American workers will NOT be tolerated," and stressed the importance of teamwork in fighting fraud.
Decline
Decline in H-1B filings by Cognizant
Cognizant's use of the H-1B program has drastically decreased in recent years.
According to Labor Department data, the company filed 3,436 Labor Condition Applications (LCAs) in 2025, down from 10,189 in 2018.
An LCA is usually required before an employer can hire an H-1B worker and outlines the terms and wages associated with employment.